IDBI Bank gains on selling entire stake in Ageas Federal Life Insurance

20 May 2022 , 02:33 PM

IDBI Bank has entered a Share Purchase Agreement with Ageas Insurance International NV on May 19, 2022 to sell IDBI Banks entire stake of 20,00,00,000 equity shares in Ageas Federal Life Insurance Company Limited (AFLI) pursuant to exercise of Call Option by Ageas, the bank said in a stock exchange filing on Friday. The transaction would be concluded subject to regulatory approvals, it added. Ageas Federal Life Insurance is a joint venture with IDBI Bank, global insurance giant Ageas and Federal Bank. As at 31 March 2022, IDBI Bank held 25% stake while Federal Bank held 26% stake and Ageas Insurance International N.V. held 49% stake in Ageas Federal Life Insurance Company. Post the stake sale, Ageas will own 74% stake in the insurer while Federal Banks stake will continue at 26%. The transaction is expected to be completed in the second quarter of the current fiscal, subject to regulatory approvals and satisfaction of the terms and conditions set out in the SPA (share purchase agreement). IDBI Bank is a full service universal bank having more than 1,890 branches with 3,300 ATMS across the globe. As on 31 March 2022, the Government of India held 45.48% stake and Life Insurance Corporation of India held 49.24% in the bank. IDBI Banks net profit improved by 35% for Q4 FY22 to Rs 691 crore as against net profit of Rs 512 crore for Q4 FY21. Net interest income stood at Rs 2,420 crore for Q4 FY22 as against Rs 3,240 crore for Q4 FY21. Net Interest Margin (NIM) stood at 3.97% for Q4 FY22 as compared to 5.14% for Q4 FY21. Powered by Capital Market – Live News